Order 2014

- 10

- 17

Served: October 21 , 20 14



### UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 21st of October , 2014

Essential Air Service at

GREAT BEND

, KANSAS

Under 49 U.S.C. 41731 et seq

. DOCKET DOT

- OST

- 1998

- 3496

ORDER APPROVING ALTERNATE SERVICE PATTERN

Summary By this O rder, the Department is approving the request of SeaPort Airlines, Inc.’s ( SeaPort ) to
alter the pattern of its Essential Air Service (EAS) at Great Bend

, Kansas ( GBD )

, to 12 weekly nonstop round trips to Kansas City International Airport ( MCI or Kansas City )

.

Background By Order 2014

- 3

- 9 (March 14, 2014), the Department selected SeaPort to provide subsidized Essential Air Service at Great Bend for an annual subsidy amount of $1,434,472. In that Order, SeaPort was selected to provide 18 weekly nonstop round trips to Wichita, Kansas ( ICT ) using a

9

- seat Cessna Caravan aircraft for a two

- y ear period beginning June 1, 2014, through July 31,2016.

By Order 2014

- 4

- 14 (April 17, 2014), the Department approved SeaPort to change its service pattern to include 12 weekly roundtrips to ICT and six weekly

, one

- stop flights to MCI (via Salina, Kansa s).

Carrier Proposal By letter dated October 7, 2014, SeaPort requested that the Department to alter its service pattern at GBD to 12 weekly nonstop round trips to MCI . The carrier cites demand for travel to Wichita has been far below projected levels, while demand for Kansas City Service has exceeded expectations. Because of the low demand for its flights to ICT

, SeaPort states that it is at risk of- 2

-

exceeding the $1,000 per passenger subsidy cap 1 a nd the current service pattern puts G reat
Bend’s long

- term EAS eligibility at risk . The City of Great Bend and SeaPort believe that changing the service to nonstop flights to Kansas City will increase passenger traffic , through increased connectivity to other airlines (vs. Wichita) and reduce subsidies below $1,000 per

passenger. SeaPort is not requesting any change to the annual subsidy requirement.

Community Comments

In a letter date d October 7 , 2014

, Martin Miller, Airport Manager for Great Bend Muni cipal Airport, along with the Airport Advisory committee and the Great Bend City Council, support the changes requested by SeaPort Airlines to alter Great Bend’s service to 12 weekly round trips

to MCI

.

Decision We will approve SeaPort ’s request, which m eets the three conditions necessary for approval under authority assigned under 14 CFR 385.12(k ) ( 3) of the Department’s Regulations: (1) the alternate service pattern is equal to or greater than that determined to be essential; (2) the community does not object to the alternate service pattern; and (3) the alternate service pattern

will not increase S eaPort ’s subsidy.

Because SeaPort will be operate six (6) fewer flights round trips than the current service pattern, we will recalculate SeaPort’s subsidy per flight as original set forth in Order 2014

- 3

- 9. There will be no change in weekly ceiling or a nnual compensation.

Because we are simply allowing the alternate service pattern and not requiring it, SeaPort may revert to the original service pattern at any time.

This order is issued under authority delegated in 49 CFR 1.25 a ( b ) and re

- delegated to t he Director, Office of Aviation Analysis.

ACCORDINGLY,

1. We approve the alterna te service pattern requested by SeaPort Airlines, Inc. by setting Great Bend’s Essential Air Service as 12 weekly nonstop round trips to Kansas City International Airport ;

2. SeaPort ’s compensation for Essential Air Service at Great Bend will be set at the service and subsidy levels set forth in Appendix A of this Order ;

3

. This docket will remain open until further order of the Department; and

4 . The Depart ment will serve a copy of this O rder on the mayor of Great Bend

, Kansas , the Airport Manager of Great Bend Municipal Airport

, and SeaPort Air lines , Inc.

1 Public Law 1 12

- 27, signed into law on August 5, 2011, further amended the definition of “ eligible place ” for the purpose of receiving EAS. The amendment, among other things, states that to be eligible, a community must have had an average subsidy per passenger of les s than $1,000 during the most recent fiscal year, as determined by the Secretary of Transportation.- 3

-

Persons entitled to petition the Department for review of this Order under the Department’s Regulations, 14 CFR Part 385. 31 , must file such petitions within seven ( 7 ) days after the date of

service of this Order

.

This order will be effective immediately, and the filing of a petition for review shall not preclude

its effectiveness.

By:

TODD M. HOMAN

Director Office of Aviation Analysis
(SEAL) An electronic version of this document is available at www.regulations.govAppendix A

SeaPort Airlines, Inc., EAS to be Provided to Great Bend, Kansas

Docket DOT

- OST

- 1998

- 3496

Effective Period : November 1 , 2014, 1 through July 31, 2016

Service: Twelve (1 2 ) nonstop round trips per week to Kansas City International Airport ( MCI ) Aircraft Type : C

- 208 Caravan Annual Subsidy : $ 1,434,472 Annual Flights : 1,844 2 Subsidy per Flight : $ 1,167 3 Weekly Subsidy Ceiling : $ 28,008 4

The carrier understands that it may forfeit its compensation for any flights that it does not operate in conformance with the terms and stipulations of the rate order, including the ser vice plans outlined in the order and any other significant elements of the required service, without prior approval. The carrier understands that an aircraft take

- off and landing at its scheduled destination constitutes a completed flight; absent an expla nation supporting subsidy eligibility for a flight that has not been completed, such as certain weather cancellations, only completed flights are considered eligible for subsidy.

In addition, if the carrier does not schedule or operate its flights in fu ll conformance with the order for a significant period, it may jeopardize its entire subsidy claim for the period in question. If the carrier contemplates any such changes beyond the scop e of the order during the applicable period of these rates, it must first notify the Office of Aviation Analysis in writing and receive written approval from the Department to be ensured of full compensation. Should circumstances warrant, the Department may locate and select a replacement carrier to provide service on the se routes. The carrier must complete all flights that can be safely operated; flights that overfly points for lack of traffic will not be compensated. In determining whether subsidy payment for a deviat ing flight should be adjusted or disallowed, the Dep artment will consider the extent to which the goals of the program are met and the extent of access to the national air transportation system provided to the community.

If the Department unilaterally, either partially or completely, terminates or reduces payments for service or changes service requirements at a specific location provided for under this order, then, at the end of the period for which the Department do es make payments in the stipulated amounts or at the stipulated service levels, the carrier may cease to provide service to that specific location without regard to any requirement for notice of such cessation. Those adjustments in the levels of subsidy and/or service th at are mutually agreed to in writing by the Department and carrier do not c onstitute a total or partial reduction or cessation of payment.

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they may be amended from time to time. However, any such statutes, regulation s, or amendments thereto shall not operate to controvert the foregoing paragraph.

Funds may not be available for performance under this Order beyond December 11 , 2014 . The Government’s obligation for performance under this Order beyond December 11 , 2014

, is subject to the availability of funds from which payment for services can be made. No legal liability on the part of the Government for any payment may arise for performance under this Order beyond

December 11 , 2014 , until funds are made available to th e Department for performance. If sufficient funds are not made available for performance beyond December 11 , 2014, the Department will provide notice in writing to the carrier.

All claims for payment, including any amended claims, must be submitted withi n 90 days of the last day of the month for which compensation is being claimed. For example, claims filed for service provided in July must be filed by October 31; August claims must be submitted by November 30, and so on.

1 SeaPort plans to change Gr eat Bend’s service on November 1 , 2014.

2 12 trips per w eek x 2 directions x 52 weeks x 0.985 completion = 1,229 flights.

3 $ 1,434,472 ÷ 1,229 flights.

4 $ 1,167 per flight x 24 flights per week.